Mike signed a contract on behalf of The Broke Girls Cantee Ltd. with a local farmer, Mr. McDonald, to purchase ingredients for the restaurant. The Broke Grads Canteen Ltd. has noticed a sharp decline in sales over the past few months and is no longer able to pay Mr. Mcdonald for Mr. McDonald's products. The Broke Grads Canteen Ltd. now owes Mr. McDonald a total of $10,000.00 Who can Mr. McDonal sue to recover funds? Who can Mr. McDonald not sue, and why?

Mike signed a contract on behalf of The Broke Girls Cantee Ltd. with a local farmer, Mr. McDonald, to purchase ingredients for the restaurant. The Broke Grads Canteen Ltd. has noticed a sharp decline in sales over the past few months and is no longer able to pay Mr. Mcdonald for Mr. McDonald's products. The Broke Grads Canteen Ltd. now owes Mr. McDonald a total of $10,000.00 Who can Mr. McDonal sue to recover funds? Who can Mr. McDonald not sue, and why?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Case 5 P Corp, a retailer of women’s fashion accessories, contracted Sandra as their purchasing agent. The agency contract expressly stipulates that Sandra is not allowed to enter into contract in excess of $50,000.00 without first obtaining approval from P Corp. On a number of occasions, Sandra negotiated the purchase of quantities of costume jewellery from Z Inc for prices varying between $30,000 to $45,000.00. Recently, Sandra placed an order with Z Inc for goods at a price of $60,000.00 and without consulting P Corp. Z Inc did not question the order. Two weeks after, Z Inc received payment from P Corp. Sandra was reprimanded by P Corp and, again, reminded of her $50,000.00 limit. Despite the warning, Sandra placed another order of $55,000.00 from Z Inc. This time P Corp refuse to pay and demanded Z Inc to take back the goods. Issues: Is Sandra acting on actual or apparent authority? Is the principal bound by the action of the agent, Sandra? Please state your reasons
Betty has agreed to sell her boat to Angela for $9,750. However, when Angela goes to Betty's house to pay for and receive the boat, Betty declares that she (Betty) no longer wants to sell the boat. What is Angela's best remedy? Get an injunction against Betty freezing Betty's assets until Betty sells the boat to Angela. Buy another used boat and sue for the difference in damages, but Angela does not have to worry about "the best price" since Betty was the party that breached the contract. O Buy a comparable used boat for the best price (that is, the lowest price) Angela can reasonably find and sue Betty for the difference as damages. O Compel Betty to find another boat in the same condition. O Buy a new boat and sue Betty for the difference in damages.
A 72,000 square foot multi-tenant retail property with an Equinox gym and a Wendy’s restaurant in Columbus, Ohio was recently sold for $7,200,000. Selling costs, including a brokerage fee, totaled five percent of the purchase price. The mortgage loan balance at the time of sale was $3,760,000. The property was purchased eight years earlier for $4,200,000, and annual depreciation deductions of $120,000 were taken each year for tax purposes. If the combined effective federal and state income tax rates on capital gains and tax depreciation recapture is 30%, what was the after-tax cash flow from the sale of the property? a. $2,288,000 b. $2,252,000 c. $2,540,000 d. $2,000,000
Martha sells goods to James for $25,000. Martha assigns her right to receive the $25,000 to XYZ Finance James refuses to pay XYZ the $25,000. James makes two arguments for not paying. First James claims that XYZ has no privity of contract and that XYZ is not a third-party beneficiary of its contract with Martha. Second – James claims that the goods were worthless. Assume that the goods were worthless. You are the judge. Who wins and why? Address both arguments that James makes.
Jasper Bakery Limited signed a purchase order to buy 50 kg of butter from a farmer over the next month at a fixed price. The butter is of exceptional quality and will be used in baked goods that will be sold in the bakery. Define the term “executory contract.” Is the contract to buy the butter an executory contract? Explain.
Andrews and Brown hired a bookkeeper, Jenice, and gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice can pay employees’ wages and other company bills. Jenice decides to cheat her employers out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers $10,000 out of the Bayside account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money. Evaluate which party or parties bear the loss.
A sold a parcel of land to B for P2,000,000. In the deed of sale, there is a stipulation that the purchase price shall be paid on a certain date and that in case of failure to pay on such a date, A can rescind the contract. Suppose that B fails to pay on the date stipulated in the contract, is Article 1191 of the NCC applicable? Why?
Before the purchase transaction, Shell had made know to Carbonic Co the purpose and intended use of electrodes. In short, Shell company put their trust and reliance on the skill and expertise of Carbonic Co. So, Shell ordered 60,000 kilograms of welding electrodes from Carbonic Co. for use in a project involving the fabrication of a cross-country gas transmission line. It turned out the electrodes are incapable of producing satisfactory weld in a vertical position. Shell sued Carbonic Co for violation under the Sale of Goods Act. Does Shell action prosper? Please state your reasons.
2. Footsmell Shoe Store, Inc. entered into a separate contracts with two rising movie stars, namely Anton and Bart. With Anton, the agreement was that the shoe store shall deliver at a specified date for the price of P10,000.00 a pair of Mikee Shoes which the store has been manufacturing for the general public but which at the time of the contract had already been sold out, and with Bart, the agreement was that the shoe store shall deliver at a specified date for a price of P20,000.00 a pair of shoes to be made specially for him, in accordance with a design submitted by him. What is the nature of these two contracts? Explain.
Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance (RSR). Granite's retention limit is $400,000 and RSR agreed to provide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy, RSR is responsible for 50 percent of the losses. If Granite insures a $1.6 million risk, RSR is responsible for 75 percent of any losses. What type of reinsurance arrangement did Granite enter into with RSR? ما A) reinsurance pool B) surplus share reinsurance C) facultative reinsurance D) excess of loss reinsurance
Executive Financial Services, Inc. (EFS), purchased three tractors from Tri-County Farm Company (Tri-County), a John Deere dealership owned by Gene Mohr and James Loyd. The tractors cost $48,000, $19,000, and $38,000. EFS did not take possession of the tractors but instead left the tractors on Tri-County’s lot. EFS leased the tractors to Mohr-Loyd Leasing (Mohr-Loyd), a partnership between Mohr and Loyd, with the understanding and representation by Mohr-Loyd that the tractors would be leased out to farmers. Instead of leasing the tractors, Tri-County sold them to three different farmers. EFS sued and obtained judgment against Tri-County, Mohr-Loyd, and Mohr and Loyd personally for breach of contract. Because that judgment remained unsatisfied, EFS sued the three farmers who bought the tractors to recover the tractors from them. a) What does the entrustment rule provide? Explain. b) Did Mohr and Loyd act ethically in this case? c) Who owns the tractors, EFS or the farmers?
In 2012, Angela took out a $15,000 loan against the cash surrender value of her whole life insurance policy. The funds were required to help pay for remodeling and redecorating her home. As a consequences of taking out the loan Angela had to report $3,000 of policy gain in 2014. She repaid $5,000 of the loan at the end of 2015, as well as paying the $600 of loan interest due for the year. What were the tax consequences to Angela and the policy as a result of the 2015 payments? A. She will be able to deduct $5,600 from her taxable income for 2015 ad the ACB of the policy will increased by $2,000. B. She will be able to deduct $3,000 from her taxable income for 2015 and the ACB of the policy will increase by $2,600. C. She will not be able to claim any deduction from her taxable income for 2015 and the ACB of the policy will increase by $5,650. D. She will be able to deduct $3,600 from her taxable income for 2015 and the ACB of the policy will increase by $2,000